Their projection follows CNL's April 22 joint venture with Harrisburg, PA-based Hersha Hospitality Trust in which CNL will invest a total $65 million in three separate transactions with Hersha Hospitality Limited Partnership, the operating partnership of Hersha Hospitality Trust.

The two REITs plan a total capitalization of $150 million for the purchase of newly built hotels in CT, MA, MD, NJ, NY, PA, VA and Washington, DC, says Thomas J. Hutchison III, co-CEO of CNL Hospitality.

"This investment in Hersha's portfolio of mid-price hotels aligns with our diversification strategy, while leveraging on the company's excellent management and development capabilities," Hutchison says. CNL initially is investing $10 million in convertible preferred partnership units of Hersha LP; has committed up to an additional $15 million; and up to $40 million in a joint venture with HLP.